On November 3, the Consumer Financial Protection Bureau announced that it has revised its appeals process and issued a new appeals policy. The announcement was made in conjunction with the release of the CFPB’s Fall 2015 Supervisory Highlights. According to the Bureau, the “revisions reflect experience gained in the appeals process so far, and
The FTC Coordinates with Federal, State, and Local Authorities in Nationwide Attack Against Abusive Debt Collectors
On November 4, 2015, the Federal Trade Commission (FTC), 47 State Attorneys General, and other state and local law enforcement authorities from around the country announced the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices. The initiative, named Operation Collection Protection, aims to crackdown on collectors who use illegal tactics
CFPB Imposes $13 Million FCRA Consent Order on Large Consumer Reporting Agencies Due to Employment Background Check Practices
On October 29, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced the settlement of an enforcement action against two affiliated consumer reporting agencies under the Fair Credit Reporting Act (“FCRA”) based on these companies’ employment background screening practices. The consent order requires these background screeners to pay a total of $13 million in penalties and
Standing on Thin Air: Spokeo, Inc. v. Robins
On November 2, 2015, a sharply divided Supreme Court of the United States heard oral arguments in Spokeo, Inc. v. Robins, where it considered whether Congress may confer Article III standing by authorizing a private right of action based on the violation of a federal statute alone, despite a plaintiff having suffered no concrete
CFPB Orders Another Auto Lender to Pay $3.28 Million to Settle Claims for Illegal Debt Collection Involving Service Members
On October 28, the Consumer Financial Protection Bureau filed an administrative consent order against Security National Automotive Acceptance Company (“SNAAC”), an Ohio auto lender specializing in loans to service members, for engaging in illegal debt collection practices. The order requires the company to refund or credit about $2.28 million to service members and other consumers
Senate Passes Cybersecurity Bill That Provides Liability Shield to Companies that Share Information
On October 27, the United States Senate passed the Cybersecurity Information Sharing Act (“CISA”) by a vote of 74-21. CISA claims to improve cybersecurity by encouraging the sharing of threat information among companies and the U.S. Government.
As previously reported here, CISA would permit private entities to share cyber threat
ABA Letter Attacks CFPB Plan for Overdraft Survey
On October 30, the American Bankers Association (“ABA”) filed a letter opposing the Consumer Financial Protection Bureau’s plan, under the Paperwork Reduction Act, to conduct a nationwide web-based survey of 8,000 individuals as part of the Bureau’s study of overdraft protection services. The ABA urged the CFPB to re-submit its proposed plan with a draft
Outsourcing Data Security to a Third Party Not a Shield From Liability
In October, at the Privacy & Security Forum at George Washington University, Federal Trade Commissioner Terrell McSweeny emphasized that companies that outsource data security to third parties can still be liable in an FTC enforcement action. This position follows what we have heard previously from the Office of Civil Rights, the agency charged with enforcement
Foreclosure Firms Fight CFPB’s Claim That They Don’t Practice Law
On October 27, two law firms accused by the Consumer Financial Protection Bureau of violating the Consumer Financial Protection Act responded to the CFPB’s allegations that they failed to provide consumers with promised legal representation by accusing the CFPB of “improperly [attempting] to create a new federal common law definition of the practice of law.”
CFPB Obtains Judgment in Excess of $500 Million Against Defunct College Chain for Student Lending Scheme
On October 27, the U.S. District Court for the Northern District of Illinois awarded the Consumer Financial Protection Bureau $531.2 million against for-profit college chain Corinthian Colleges, Inc. for what the Bureau described as a “predatory” student lending program that the company administered. Prior to its liquidation through bankruptcy earlier this year, Corinthian was one